Worker remittances plunge over 32% in April; cumulative decline at 9%

Worker remittances to Sri Lanka in April declined close to a third in what could be the most pronounced fall recorded in a single month, according to the Central Bank data.

Central Bank expects V-shaped recovery amid pent-up demand

Fresh Hong Kong fears spark stocks sell-off

Hong Kong led a sell-off across world equities yesterday after China introduced proposals to enact a national security law for the city, fanning geopolitical tensions and overshadowing optimism about a further easing of virus lockdowns across Europe and the US.

No annual growth target for virus-hit China, a first in years

China’s communist rulers avoided setting an annual growth target for the first time in decades yesterday, as they struggle to deal with the “immense” economic challenges caused by the coronavirus pandemic.

Eurozone economy has ‘likely bottomed out’: PMI survey

The eurozone’s economic slump has “likely bottomed out” after the bloc suffered a disastrous collapse under lockdowns to contain coronavirus, a closely watched survey by IHS Markit said this week.

ADB Governors approve corporate financial matters in first virtual annual meeting

The Board of Governors of the Asian Development Bank (ADB) yesterday approved ADB’s financial statements and the allocation of its 2019 net income in its first-ever virtual Annual Meeting held amid the novel coronavirus disease (COVID-19) pandemic.

Uber commits Rs.10 mn for safety supplies, partners with Dettol

To step up safety standards for riders and drivers during the ongoing Covid-19 pandemic, Uber Sri Lanka has procured and started distributing safety supplies such as masks and sanitisers worth Rs.10 million, free of cost to driver and delivery partners.

Lanka IOC reduces petrol price

Lanka IOC has decided to restore the prices of petrol 92 on par with CPC petrol sheds by reducing Rs.5 per litre from midnight yesterday (22).

Central Bank cancels The Finance licence

The Monetary Board of the Central Bank yesterday announced the cancellation of licence of The Finance Company PLC (TFC) with effect from May 22, 2020 as the company failed to lure in credible investors to rectify its serious erosion of liquidity.

Countrywide inflation slows to 5.9% in April on lower food prices, base effect

Headline inflation as measured by the year-on-year (YoY) change in the National Consumer Price Index (NCPI, 2013=100) decreased to 5.9 percent in April 2020 from 7.0 percent in March 2020.

Global stocks retreat as virus uncertainty tempers lockdown easing

Stock markets mostly fell yesterday after rallying for much of the week, with any gains dragged by profit-taking amid concerns over the long-term impact of the virus and worsening China-US relations.

KPMG advises banks to align biz model to cater to ongoing crisis

The local banking sector will continue to witness further challenges in its path towards any progress. However, despite the hurdles faced, the industry must look at supporting businesses and individuals by aligning its current operating model to the ongoing crisis, global advisory firm KPMG said.

Stock market’s S&P SL20 Index marks second historic gain in a week

The S&P SL20 Index of the Colombo Stock Exchange (CSE) gained 6.28 percent during trading yesterday, bettering the record for the highest ever daily percentage gain of the index which stood at 5.25 percent, set on May 18, 2020.

Prime Group sets benchmark for real estate industry with credit rating

Prime Group has made history becoming the first institution in the Sri Lankan real estate industry to receive a prestigious issuer rating of [A-] Stable from ICRA Lanka, a group company of Moody’s Investors Service.

Positive investor response for proposed Eravur fabric park: BOI

Sri Lanka’s Board of Investment (BOI) says positive foreign investor response has been received for the fabric processing park to be setup in Eravur, Batticaloa to source fabrics locally for apparel exporters.

Sri Lanka may benefit from early buyback of US$ 1bn ISB maturing in October

Sri Lanka may benefit from an early buyback of US$1 billion dollar-denominated international sovereign bond (ISB) maturing this October, although buying back ISBs which are maturing in medium to long-term remains unfeasible considering the country’s limited foreign exchange reserves, an economist opined.

John Keells expects “material” impact on its biz from COVID-19

Premier blue chip John Keells Holdings (JKH) expects the impact of COVID-19 pandemic on its businesses to be “material” in the first and the second quarters of the financial year 2020/21, particularly on the group’s tourism focused businesses.

Stock market was not closed. It was not possible to open it

In his first interview with the media, the newly appointed Securities and Exchange Commission (SEC) Chairman Viraj Dayaratne PC talks about the unprecedented challenges he and his new Commission Members had to face and the tough decisions they had to make on the country’s already lagging stock market, amid the COVID-19-induced curfews and economic slowdown.

Ceylon Chamber proposes multisectoral approach for post-COVID-19 economic revival

The Ceylon Chamber of Commerce submitted its multi-sectoral proposals to the Task Force for Economic Revival and Poverty Alleviation. This was building on the submission made to the President on a Shared Vision for Post-COVID-19 Economic Recovery.

Recovery for Lanka corporates only beyond 2020 horizon: Fitch

Recovery is beyond the 2020 horizon for Sri Lankan corporates and expected is a sharp decline in revenue for most sectors, credit rating agency Fitch Ratings said.

ComBank reduces lending rates in quick response to COVID-19 crisis

Commercial Bank of Ceylon has announced a reduction of lending rates across the board in response to the present needs of individual and corporate borrowers and in line with the downward trend of interest rates in Sri Lanka.

Ceylon Cold Stores concludes a stronger March quarter

Ceylon Cold Stores PLC (CCS) reported strong top and bottom line performance for the three months to March 2020, with increased consumer spending amid tax cuts and lower interest rates.

NDB operating profits steady in March

National Development Bank PLC’s (NDB) operating profits held steady during the three months to March 31, 2020, despite the pressure on margins and higher credit costs stemming from the coronavirus-linked additional provisions against possible bad loans.

Human development on course to decline this year for first time since 1990: UNDP

Global human development, which can be measured as a combination of the world’s education, health and living standards, could decline this year for the first time since the concept was introduced in 1990, the United Nations Development Programme (UNDP) warned, yesterday.

S&P cuts Sri Lanka’s rating on weakened fiscal position

Standard & Poor’s (S&P) yesterday lowered Sri Lanka’s sovereign rating to ‘B-’ on the country’s weakened fiscal position amid COVID-19 recession while kept the outlook ‘Stable’ as the island nation still has access to sufficient resources to meet its debt obligations over the next 12 months.

April merchandise exports record historic decline

Sri Lanka’s April merchandise exports have fallen to their lowest levels since April 2002, recording a historical drop of 64 percent year-on-year (YoY) to US $ 277.4 million, driven by a record 81.8 percent YoY decline in apparel exports with tea exports regaining the top export status after decades, due to the impacts stemming from the COVID-19 crisis.

MAS joint venture firm announces VRS

The world’s biggest narrow fabric and elastics supplier to the garments industry, Stretchline Holdings, of which Sri Lanka’s MAS Holdings is a joint venture partner, has announced a voluntary retirement scheme (VRS) at one of its plants in Sri Lanka, as the apparel exporters renew the call to the government to amend the existing labour laws to allow a 30 percent cut in employment, to survive during the COVID-19 crisis period.

Govt. reiterates commitment to meeting all its financial obligations

Responding to the inferences made in recent media reports questioning the government’s ability to honour its debt service obligations, the Central Bank yesterday reiterated the government’s commitment to meeting all its financial obligations.

G-20 debt freeze won’t fix eligible sovereigns’ liquidity pressures or medium-term debt challenges: Moody’s

The G-20 debt suspension initiative is unlikely to ease the significant credit challenges that the coronavirus pandemic has amplified in some frontier market sovereigns, particularly in Africa, Moody’s Investors Service said in a report this week.

No return to pre-crisis air traffic before 2023: IATA

Airline passenger traffic is not expected to return to pre-crisis levels until 2023 at the earliest and may suffer even more if new health rules impose an excessive cost burden, the International Air Transport Association (IATA) said.